Market Overview

IHS Markit Provides Critical Infrastructure to Replace LIBOR in Derivatives Markets


MarkitSERV powers first wave of SOFR swaps trades

IHS Markit (NASDAQ:INFO), a world leader in critical information,
analytics and solutions, today announced that MarkitSERV, its trade
processing service for OTC derivatives, is at the forefront of the use
of new reference rates replacing LIBOR in derivatives markets.

The first wave of OTC derivatives trades using the new Secured Overnight
Financing Rate (SOFR) used MarkitSERV to match, confirm and straight
through process them for clearing and regulatory reporting. To date,
seven major derivatives dealers have completed SOFR trades using
MarkitSERV. These included both cleared and non-cleared, as well as
party-to-party direct and SEF-executed trades.

"Helping our clients adopt new reference rates is a classic example of
how we provide a highly reliable and efficient mechanism for the
derivatives market to both innovate and respond to industry-driven
change," said Claire Lobo, managing director at MarkitSERV. "As we have
done for clearing, reporting and electronic trading, when we bring a new
standard like SOFR onto MarkitSERV, we automatically update the market
and create the bridge between new and old types of swaps, regulatory
regimes and multiple forms of trade execution."

"Goldman Sachs fully supports the advent of new reference rates and the
important changes they will bring to our markets," said Richard
Chambers, global head short macro trading at Goldman Sachs. "MarkitSERV
helps us and our clients operate efficiently and keep pace with rapid
evolution in derivatives markets."

Shawn Bernardo, CEO of tpSEF, which was the first SEF to complete a SOFR
trade, said, "I am very excited that TPIcap were part of the first SEF
executed SOFR swap transaction and that we were able to rely on the
network and post trade services provided by MarkitSERV in completing the

Currently, MarkitSERV supports SOFR, SARON (Swiss Francs), SONIA
(British Pounds) and TONA (Japanese Yen). For each new reference rate,
MarkitSERV consults extensively with market participants to provide the
standards and functionality required to reliably and efficiently
confirm, clear, report and manage other trade lifecycle events using the
MarkitSERV network.

"It is no surprise that the first SOFR swaps happened the week after the
CFTC's Market Risk Advisory Committee meeting addressed the transition
from LIBOR on July 12," said Salman Banaei, executive director at IHS
Markit and a member of the Committee. "Cooperation among regulators,
market participants and infrastructure providers like MarkitSERV was
critical to the successful start for this transition."

MarkitSERV will add other reference rates intended as successors to
LIBOR, based on industry demand.

MarkitSERV is an integrated, multi asset class service for the
management of trade confirmation, clearing, allocation of block trades
and regulatory reporting. More than 2,500 firms use MarkitSERV to
process OTC derivatives trades, connect with 18 clearinghouses worldwide
and report trades in multiple jurisdictions.

About IHS Markit (

IHS Markit (NASDAQ:INFO) is a world leader in critical information,
analytics and solutions for the major industries and markets that drive
economies worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and
government, improving their operational efficiency and providing deep
insights that lead to well-informed, confident decisions. IHS Markit has
more than 50,000 business and government customers, including 80 percent
of the Fortune Global 500 and the world's leading financial institutions.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its
affiliates. All other company and product names may be trademarks of
their respective owners © 2018 IHS Markit Ltd. All rights reserved.

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